Since we live in a world where we have great and precise tools I wonder why our efficiency is less precise. Very often I realise that we counterbalance less good extremes like:
important – unimportant
fast – slow
black – white
We tend to go for 100 % or to leave it 100 %.
Referring to my investment experience it is very good to start buying or selling with a small portion, add or sell more until you reach your target amount. Have an open time space. Of course you need to be sure about the quality of the investment.
If you are on the buy-side you might never reach your target amount as you have been confronted with an unexpected market rally. Then you need to wait until you get interesting buying opportunities. This is why it is at your best to have an open-ended period. Sometimes you are lucky and you get a lot of excellent opportunities as markets are under pressure. On the sell-side the opposite works.
When applying this investment tactic check the trade size in order not to get penalized with minimum trade costs.
